I don't think this should be regulated at all. Apple should be able to impose their rules in their systems. Let's be clear about this, if people are choosing to buy these black-box closed handheld computing devices, there are consequences that come with that choice.
Exactly. There are pros and cons to this sort of model. The pro is that the security model of an iphone is better than probably anything else one could buy. The con is that apple makes the rules about what goes and stays. Given the popularity of this app, I could see a kid wanting an android instead for this reason. On the other hand, Apple could easily make the case that this is to prevent scams, maintain parental controls, etc.